SINGAPORE — Bintan Lagoon Resort, a popular hotel for Singaporeans located on nearby Bintan island in Indonesia, is ceasing operations after 26 years.

Nearly 500 employees at the five-star resort have been laid off, according to Indonesian news outlet Antara News.

The resort, which spans 300 ha with a total of 450 rooms, has been losing money for the past two years, and the lack of visitors during the Covid-19 crisis only made matters worse.

Bintan Lagoon Resort, on Pasir Panjang beach, is owned by Resort Venture Pte Ltd, a private company incorporated in Singapore. The resort is about a 75 minute ferry ride from Singapore.

TODAY sought comment from Bintan Lagoon Resort but the resort declined, adding that a press statement will be released next week.

The plan for the closure was submitted to the Bintan Regency Manpower Office on July 31.

Mr Indra Hidayat, head of the Bintan Employment Agency, was quoted by Antara as saying that the resort will comply with manpower regulations such as paying severance packages for its employees.

He added that he would oversee the process of layoffs for employees of the resort.

Singaporeans contribute greatly to tourism in the Riau Islands province of which Bintan is part. According to the Jakarta Post, almost half of the foreign visitors to the islands in 2019 were Singaporeans.

In October 2019, the resort was given the Hotel Experience of the Year Award 2020 at the International Association of Golf Tour Operators Global Golf Travel Awards.